French property prices stabilising, say leading estate agencies
Agents say 2024 is seeing the end of three consecutive years of falls in transaction volume
In rural areas for ‘old houses’, the upward cycle has already begun, the report found
GranTotufo/Shutterstock
Property prices in France are stabilising and could rise by next year, leading estate agents have said, after months of slow sales and falling prices.
Prices for non newbuild property are stabilising nationwide, and may start to rise again as early as 2025, estate agents SeLoger and Meilleurs Agents have said.
The agencies presented their new market analysis to the press on September 3, entitled: “The worst is behind us”. It said that “the year 2024 is marking the end of three consecutive years of sharp drops in transaction volume”.
Prices still down but stabilising
The report stated that:
Property prices in France were down by a slight 1.3% as of September 1, compared with the last 12 months
There was a year-on-year fall of 3% in April
In contrast, however, more recent rises in rural areas mean that prices have now risen overall by around 0.5% nationally since January 2024, a sign that the market is showing signs of stabilisation.
“This stabilising trend is being confirmed in most of France's major cities, but also in rural areas,” said Thomas Lefebvre, vice-president of Se Loger and Meilleurs Agents.
However prices are still down slightly in urban areas, the report said, including:
In Paris, the fall is the most significant: prices have fallen by 4.8% year-on-year, and the capital has seen its sharpest reduction in prices since 2000, with a drop of 14.2% since July 2020. Paris prices now average €9,293 per square metre, the report states.
Read also: Where have property prices fallen the most in France?
Read also: House price falls accelerating in France: will this continue?
Prices set to rise again next year
Yet, the estate agents predicted that while prices may continue to drop slightly before the end of 2024, they will stabilise completely by the end of the year.
An upward cycle will begin in 2025, with a rise of at least 2%, and a predicted 900,000 transitions (up from 771,000 in 2024), the report said.
“The rise in demand expected in spring 2025 will tip the market into a new dynamic,” said Mr Lefebvre.
The expected fall in mortgage rates - which are expected to be below 3% from spring 2025, compared with the current average of 3.60% for 20-year loans - should also help to bring buyers back to the market, he said.
Read also: Could the French property slump be coming to an end in 2024?
In rural areas, the upward cycle has already begun, with prices having risen by 1.2% year-on-year overall, the report found.
